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3 Mid-Cap Blend Mutual Funds for Higher Returns

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Investors interested in comparatively less risky returns through exposure to both growth and value securities may opt for mid-cap blend mutual funds. While mid-cap funds are expected to offer the best of both large- and small-cap ones, blend funds, also known as "hybrid funds," aim value appreciation by capital gains. Companies with market capitalization between $2 billion and $10 billion are generally considered mid-cap firms.

Moreover, mid-cap funds are believed to provide higher returns than their large-cap counterparts while witnessing a lower level of volatility than the small-cap ones. Meanwhile, blend funds provide significant exposure to both growth and value stocks. These funds owe their origin to a graphical representation of a fund's equity style box.

Below, we will share with you three mid-cap blend mutual funds, namely U.S. Vector Equity Portfolio (DFVEX - Free Report) , Vanguard Strategic Equity Fund (VSEQX - Free Report) and Fidelity Mid-Cap Stock Fund (FMCSX - Free Report) . Each has earned a Zacks Mutual Fund #1 Rank (Strong Buy), as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all mid-cap blend funds, investors can click here to see the complete list of funds.

U.S. Vector Equity Portfolio invests most of its net assets in a broad and diverse group of companies operating in the United States with high exposure in smaller-capitalization, lower relative price and higher profitability companies. DFVEX advisors choose to invest in a weighted set of U.S. operating companies that are listed on the U.S. securities exchange.

U.S. Vector Equity Portfolio has three-year annualized returns of 17.8%. John A. Hertzer has been the fund manager of DFVEX since 2022.

Vanguard Strategic Equity Fund seeks maximum long-term capital growth by investing primarily in the stocks of small and midsize companies. VSEQX advisors use computer-driven valuation models to assess valuation criteria such as earnings and cash flow.

Vanguard Strategic Equity Fund has three-year annualized returns of 17.9%. As of the end of March 2023, VSEQX had 558 issues and invested 0.9% of its net assets in United Rentals Inc.

Fidelity Mid-Cap Stock Fund seeks long-term growth of capital by investing in common stocks of companies with medium market capitalization. FMCSX advisors also invest in companies with smaller or larger market capitalization and in domestic and foreign issuers.

Fidelity Mid-Cap Stock Fund has three-year annualized returns of 16.3%. FMCSX has an expense ratio of 0.84% compared with the category average of 0.94%.

To view the Zacks Rank and past performance of mid-cap cap blend mutual funds, investors can click here to see the complete list of funds.
 

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